Chiemsee Knee Replacement Clinic
The Chiemsee Knee Replacement Clinic (CKRC) is a sports clinic located at the northern edge ofthe German Alps. It specializes in knee replacements for skiers who come to CKRC fromGermany, Austria, Switzerland, and Italy. The clinic currently has one operating room (OR).However, since the clinic has dramatically more demand than capacity, the management teamcontemplates investing in a second OR. A lean consulting firm, however, suggests that beforegoing ahead with installing new capacity, the clinic should first look at how it uses its existingcapacity. The data collected by the consulting firm reveal that:- The OR is available for 12 hours a day; the hospital has decided to not perform anyprocedures between 7pm and 7am. This time is equally divided across three surgeons.- The standard procedure time for the knee surgery done at the clinic is 1h.- The cleaning and housekeeping that needs to happen after each procedure takes 20minutes. Almost all of this time could be saved if the cleaning crew were notified earlieron.- 10 minutes are spent on patient preparation / anesthesia work before each procedure.(Note: this is not part of the 60-minute procedure time). Proposals have been evaluatedto move these 10 minutes to outside the OR, and there exists no medical reason thatwould prohibit doing this.- A surgeon only starts a case if all of the work associated with the case (preparation,procedure, and cleaning) can be completed in the 4h allotted to each surgeon. Surgeonsnever start BEFORE their allotted time.- Though the clinic aims to operate 7 days a week, holidays, vacation, and constructiontime lead to an average of one day a week that the OR cannot be used at all.
CKRC2. What is the OEE of the operating room? Assume a 12h window in which the OR couldbe used
Parsa Real Estate
Parsa Real Estate is a company that buys and rents real estate. The company is looking intobuying an office building for $1M. The building has 10,000 square feet of rentable office space.
The company analysts predict that they can rent the office space for $6 per square foot per month, but demand is a function of price in the following way:
% Occupied = 2 - 0.2*Rent(Rent is in dollars per square foot per month. Also, at $6.00, Oscar thinks he can fill about 80%of the office space.)
The building needs to be maintained (security, insurance, maintenance, etc.), which costs$10,000 per month regardless of occupancy. Also, there is a variable cost of $2 per month foreach square foot occupied.
Define the return on invested capital as the ratio of the profits (PER YEAR) and the investedcapital. You can draw an ROIC tree in the same way that we drew a KPI tree in class. Simplyhave the ROIC as "the root" of the tree instead of profits. Then answer the following questions
PR1. What is the ROIC? (Please give your answer in decimal form. For example, 0.25 for 25%)
PR2. What would be the new ROIC be if Parsa Real Estate decides to charge rent of $8.00 persquare foot per month? (Please give your answer in decimal form. For example, 0.25 for 25%)
12 Tasks to 4 Workers
Consider the following tasks that must be assigned to four workers on a conveyor-pacedassembly line (i.e., a machine-paced line flow). Each worker must perform at least one task.There exists unlimited demand unless stated otherwise.
Time to Complete Task (seconds):
Task 1: 30
Task 2: 25
Task 3: 15
Task 4: 20
Task 5: 15
Task 6: 20
Task 7: 50
Task 8: 15
Task 9: 20
Task 10: 25
Task 11: 15
Task 12: 20
The current conveyor-paced assembly-line configuration assigns the workers in the following way: Worker 1: Tasks 1, 2, 3
Worker 2: Tasks 4, 5, 6
Worker 3: Tasks 7, 8, 9
Worker 4: Tasks 10, 11, 12
12T4W2. What is the direct labor content?